Pre paid credit is a great way to get into (or back into) credit cards. Like the name suggests, pre paid credit cards are, well, pre paid. You lay down the cash to get started and then have the freedom of use of any conventional credit card.
When I first started using credit, my card was pre-paid. You don’t need to worry about big bills, interest or late payments, because you’ve already taken care of that.
Here are some of the best benefits of pre-paid credit:
Security of information
Some people like using a pre-paid credit card when they’re using a new online merchant. The payment information of a pre-paid card can easily be changed if compromised.
With pre paid cards, the fees are usually small. Just be sure to read the fine print to find out what you get charged per use. Paying these are a great trade off for the instant access to credit.
Never miss a payment!
As we said, you’ve already paid the card in full! Use it, monitor your levels of cash, but rest easy.
Anyone can get one
If you’ve got the money, you can get a card. Don’t worry about credit checks, financial statements or anything.
Have you used pre-paid credit? Let us know if there are other benefits we missed!